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March 24, 2019
Exemptions U/s 10 of Income Tax Act

Exemptions u/s 10 of Income Tax Act

Here we will go through some of the basic exemption u/s 10 of Income Tax Act.

Section 10(5)

Leave Travel Concession

Exemption is available to all employee receiving a value of any travel concession or assistance from the employer for himself or family member. 

For non govt employee :- least of the following

1) Earned Leave ( No. of month ) * Average monthly Salary.

2) 10 * Average monthly salary.

3) Rs 3,00,000.

4) Actual amount received.

Section 10(7)

Perquisites by Govt to its employees

All the perquisites paid by government to its employees ( who are citizen of India) for services rendered outside India.

Section 10(10CC)

Tax on perquisites paid by employer

Employer paying tax of employee on his behalf as a non-monetary perquisites is exempt in hands of employee.

Section 10 (13a)

HRA Exemption

allowance received by employee from his employer in lieu of rent paid by him for rental accommodation is exempt to least of following:-

1) Excess of rent paid - 10% of salary,

2) 50 % of salary due to assessee,

3) Actual amount received.

Here Salary = Basic +DA ( if part of retirement benefit) + turnover based commission ( if any).

Section 10(35)

Income from UTI and other Mutual Funds 

1) Dividend income covered by section 115-O,

2) Income received by unit holder of UTI,

3) Income received for unit of mutual fund,

4) Income earned from units of specified companies.

Section 10(23D)

Income from Tax free Mutual Fund

Any Income received from mutual fund registered under SEBI act or regulations made there-under, mutual fund set up by public sector bank, or a public financial institution, authorized by RBI.

These exemptions are available subject to provisions of section 115R to 115T )

Section 10 (23DA)

Distributed Income from Securitization trust to its investor is exempt.

Section 10 (36)

Long term capital gain ( held for more then 12 months ) on sale of eligible share.

Section 10 (37)

Capital  gain on sale of agricultural land.

Section 10 (38)

LTCG on sale of shares and securities ( equity share or unit  of business trust / equity oriented mutual fund ) on which STT has been paid.

For article on Chapter VI-A deductions :- Click Here

Thanks & regards
Ankit Kapoor